In a shifting interest rate environment, higher education institutions have new factors to consider as they contemplate taking on additional debt. In recent years, institutions have continued to increase the amount of long-term debt that they hold, even as enrollment growth slowed, and excess capacity is expected to be an ongoing challenge. Is the sector approaching a limit to the benefits that debt-financing can provide?
EY-Parthenon’s joint study with NACUBO found that decisions about debt are often made primarily based on financial metrics that indicate if an institution can take on further debt without sufficient attention paid to whether it should. During this webcast, panelists will present and discuss a framework for how institutions might think differently about their debt decisions going forward.